The Mexican Central Bank, Banco de México raised interest rates by 25 basis points to 5.00% with the bank saying headline and core inflation forecasts were revised upwards. Last month the Banco Central do Brasil hiked its benchmark interest rate by 150bp to 7.75% The Mexico central bank Governing Board increased the target for the overnight interbank interest rate by 25 basis points to 5.00%. The vote was not unanimous, voting in favor of the decision were Alejandro Díaz de … Continue reading “Banco de México Raises Rates Again With Inflation Risk To Mexican Economy”
The Mexican Central Bank, Banco de México raised interest rates by 25 basis points to 4.75% with the bank saying headline and core inflation forecasts were revised upwards. Last week the Banco Central do Brasil hiked its benchmark interest rate by 100bp to 6.25%
The Mexican Central Bank, Banco de México cut interest rates as expected. The bank sees lower GDP growth and CPI in 2019 and 2020 in an underperforming economy and widening output gap.
Goldman Sachs say that Banco de México, Mexico’s central bank may respond with a surprise rate cut They cite an underperforming economy, cost of border protection and widening output gap.
US President Trump announced a 5% tariff on Mexico saying that if Mexico does not do more to halt illegal immigration into the US the 5% tariff will rise to 25% in steps by October 2019. The Mexican Peso Collapsed on the news.
Fitch Ratings downgraded its outlook for Mexico’s sovereign debt on Wednesday with the catalyst the decision by president-elect Andrés Manuel López Obrador to cancel a $13bn new airport project this week.
After months of negotiations the United States and Mexico have replaced the previous NAFTA agreement with the United States – Mexico Trade Agreement. Canada was not part of the deal, they maybe added later, or not. The pressure is now on the Canadians.
Reports that the White House at next week’s summit of the Americas in Peru wants to present a preliminary NAFTA agreement saw the CAD and MXN rise against the dollar yesterday on the more conciliatory tone of the US.
Banco de México, Mexico’s central bank left its benchmark borrowing rate unchanged at 7% as expected. The vote was unaminous with impacts from recent earthquakes and the inflation risks subsiding.
The NAFTA renegotiation talks completed their third round today in Ottawa, Canada. No surprise the reporters favorite topic, the US imposing 220% duty on Bombardier planes. Negotiators from Canada, Mexico and the U.S. were all positive and look forward to round 4.